Foreign exchange has always been an issue for many people in Canada mostly people who shop in the US or make a number of online purchases from retailers who are based in the US. The bank of Canada usually poses the rates of the current cash exchange in their website which is a good thing because you are able to get an idea of how much it is you are actually going to get. It is also important that you get to review your various exchange options before settling for anything so that you are able to get one that will suit you best. Canadian dollar credit cardsWhen making your online purchases or buying stuff from your online store using a Canadian dollar credit card, it is important that you know that most of this Canadian dollar credit cards charge a very high amount of money for the transaction fees. Therefore, if you do not want to receive any kind of surprise during the end of the month, it is important that you first do your research and get to know how much it is that they are actually charging as transaction fees.US dollar credit cardsSome people opted for US dollar credit cards especially when it comes to buying of foreign goods that are been offered by US retailers so as to avoid paying for the hefty transactions fees that normally come with the Canadian dollar credit cards. BanksEven though banks also charge high amounts of money when it comes to an exchange of money, they are still very popular to most people. On the brighter side, it is important to note that banks are easily accessible not forgetting that they are fast therefore making them very convenient to their users. Banks may be the best option for you especially if you do not have any time to waste or you are not exchanging a large amount of money. Kiosks or Online currency exchangeThere are a number of online businesses and boutique business stores who mainly specialize in foreign exchange around different countries and cities. Online currency exchange companies usually offers their clients better rates as well as deals compared to banks. However, if time is something that you do not have, you may not be able to get one that is conveniently in your location.ATM machinesIf you are in the US already, ATM machines may prove to be very helpful and convenient for you. It is, however, important to note that this ATMs are normally higher in terms of charges especially when it comes to foreign exchange. ATMs should be the last choice especially when it comes to getting access to US dollars.

WHAT IS CURRENCY FLUCTUATION?This is the tendency in which a nation’s currency value increases or decreases as compared to other nations’ currency. The changing value of currencies is constant. It is greatly affected by the changing trends of the demand and supply in the market. Although the underlying economy is highly expected to determine the level of a currency, it may occur in a different way in that; the economy’s luck can be determined by high currency movements. IMPACTS OF CURRENCY ON THE ECONOMYThe following facets of economy are highly affected by a currency level MERCHANDISE TRADE

It’s defined as an international trade of a nation. When a currency of a nation is weak, its exports are stimulated and this makes the price of its import even higher. This leads to an increased surplus. In international trade markets, a country’s export trade will always be competitive due to a fall in its own currency. On the other hand, when a currency is stable and strong, there is a fall in competitiveness of exports which reduces the price of imports. This might lead to higher expanding of trade deficit and it makes the currency weak.CAPITAL FLOW A country which has a very strong government and economies and currencies that are stable tend to receive more foreign capital. This is because investors get attracted to stable currencies. There are two main types of current flows;

Foreign direct investments: it is also abbreviated as FDI. Here, capitalists from foreign countries take interests in available markets or they construct new facilities in other continents where they invest in overseas assets. FDI is a captious way of generating capital.

As said before, when most central banks are laying monetary policy, they at most consider the level of exchange rate. A nation whose currency is strong has a weak economy and if the monetary policy tends to be high, the rate of interest shoots up. At times, when a currency of a nation is very strong, extreme tightening of the policy may worsen the difficulty by attracting more capitalists from foreign countries who are in search of investments that are more profitable. This would further increase the domestic currency.INFLATION

Countries which import goods and services at large tend to have their currency losing its value which can lead to inflation. When a currency of a country falls suddenly, it may lead to an increase in the price of imported goods and services since a fall in currency means an increase in importing price to get to the main point of starting